Citigroup beats profit expectations on bond trading comeback

Fri Oct 14, 2016 9:54am EDT
 
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By Sweta Singh and David Henry

(Reuters) - Citigroup Inc, the fourth-biggest U.S. bank by assets, beat expectations for third-quarter net profit on Friday after trading revenue surged 35 percent.

The resurgence, which was echoed at rival JPMorgan, is a boost for Chief Executive Michael Corbat, who has stuck with the bank's trading business while shrinking large parts of its consumer banking business in overseas markets.

While net income fell 11 percent to $3.84 billion, or $1.24 per share, it exceeded the average estimate of $1.16 per share, according to Thomson Reuters I/B/E/S.

Total adjusted revenue fell 4 percent to $17.76 billion, again beating the average estimate of $17.36 billion.

Citigroup's shares rose 2.2 percent to $49.58 in early trading, similar to gains at rivals JPMorgan, Wells Fargo, Goldman Sachs and Morgan Stanley, as investors lauded a solid start to the U.S. bank earnings season.

Both JPMorgan and Wells Fargo beat third-quarter profit forecasts on Friday. Bank of America reports results on Monday, followed by Goldman Sachs and Morgan Stanley later next week.

CONSUMER BANKING   Continued...

 
Traders work in the Citigroup booth on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 25, 2016.  REUTERS/Brendan McDermid